# Hibbing Taconite Company bg u taik Cliffs Minin g Company, Mana g er



# September 19, 2005
Minnesota Pollution Control Agency Supervisor Compliance Determination Unit Air Quality Division 520 Lafayette Road North St. Paul, MN 55155-4194
Re: Hibbing Taconite Company Air Permit No. 13700061-001 Notification of Energy and Emission Reduction Project
To Whom It May Concern:
With this letter, Hibbing Taconite Company ("HTC") is pleased to notify the Minnesota Pollution Control Agency of HTC's upcoming Energy and Emission Reduction Project. Because of an unplanned breakdown of the updraft drying fan in Furnace Line 3, the maintenance that HTC originally scheduled for October 2005 (including this energy and emission reduction project) will now occur in late September 2005. The project will involve a change to the two combustion chamber upper air inlets on the Line 3 indurating furnace to allow for more efficient combustion of natural gas. Specifically, the project will include increasing the cross-sectional area of the upper inlet air transition ducts to match the diameter of the combustion chambers, in order to produce a more uniform airflow. This change is anticipated to eliminate the need for the atomizing air that is currently used to push the flame out into the firing hood, because of interference to the lower burners' flame pattern by the existing swirling action and uneven airflow in the combustion chambers. The heating of this atomizing air results in higher indurating fuel natural gas usage.
Based on computational fluid dynamic modeling conducted by Energy Systems Associates ("ESA"), ESA projects up to a 10% decrease in indurating fuel natural gas usage, resulting from the improvement project. A copy of ESA's modeling analysis and predicted indurating fuel natural gas use reductions are included as Attachment A to this letter. Based on ESA's modeling and calculations prepared by Barr Engineering, the project will not result in any increase in the lb/hour emission rate and annual emissions from the Line 3 furnace. In fact, the project is calculated to substantially reduce NOx emissions by as much as —196 tons per year. A copy of Barr Engineering's emission calculations is included as Attachment B to this letter.
The project does not change any production capacities and merely seeks to realize indurating fuel natural gas savings (and associated emission reductions) through more efficient operation of the furnace. As the project does not result in any emissions increase as calculated under Minn. R. 7007.1200, and does not otherwise constitute a

Hi g hway 5 North • P.O. Box 589 • Hibbing, MN 55746-0589 • 218/262-6800 • Fax 218/262-6877

# modification of process or control equipment, no permit amendment or formal notification to MPCA is required prior to commencement or completion of this project. The purpose of this letter, therefore, is merely to keep MPCA informed regarding HTC's ongoing efforts to reduce energy consumption and lower emissions at its facility.
To the extent that you have any questions regarding this project, please contact me at (218) 262-6856.
Sincerely,

Andrea J. Hayden Senior Environmental Coordinator Hibbing Taconite Company

W/attachments

C: E. LaTendresse S. Rogers S. Romani D. Skolasinski D. Crouch D. Byrne

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# Attachment B

## Barr Engineering Company 4700 West 77th Street • Minneapolis, MN 55435-4803 Phone: 952-832-2600 - Fax: 952-832-2601 • www.barr.corn An EEC Employer 

# BARR
Minneapolis, MN • Hibbing, MN • Duluth, MN • Ann Arbor, MI • Jefferson City, MO



# To: 

# Andrea J. Hayden
From: 

# Jack Kennedy Subject: 

# Combustor Redesign PSD Baseline vs. Projected Actual Emissions
Date: 

# May 16, 2005 Project: 

# 23/69-595

c: Steven G. Rogers

Dear Andrea:

The purpose of this letter is to quantify whether or not a change in emissions is expected to occur at Hibbing Taconite Company (HTC) as a result of the combustor redesign project on its indurating Furnace Line 3 per federal EPA rules found at 40 CFR 52.21.

Proposed Change:

Hibbing Taconite proposes to modify the combustor air inlets on its indurating Furnace Line 3. The proposed design change will allow for more efficient natural gas combustion, and is expected to reduce natural gas consumption by up to 10%. The sole purpose of the project is to reduce HTC's fuel use rate. The project does not change HTC's taconite pellet production capacity. The design change is based on Energy Systems Associates (ESA) computer modeling of the combustors. ESA's modeling of proposed change suggests that no emission increase will occur as a result of the change.

Task Description:

Barr Engineering Co. was asked to document the combustor redesign project's expected change in emissions using the baseline actual to projected actual emissions test. This test is used to determine whether or not Prevention of Significant Deterioration (PSD) permitting requirements apply to a particular project. The test method is described in the PSD regulations at 40 CFR 52.21(a)(2)(iv)(c). The test is performed by taking the difference between the facility's baseline actual emission rate and its projected future actual emissions. If the emission change for the project shows an increase, and the increase is less than PSD significance levels, PSD permitting requirements do not apply. Significant emission increases are defined at 40 CFR 52.21(6)(23). Emission increases associated with normal demand growth, and

### To: Andrea J. Hayden From: Jack Kennedy Subject: Combustor Redesign PSD Baseline vs. Projected Actual Emissions Date: May 16, 2005 Project: 23169.595
c: Steven G. Rogers Page 2 of 4 

# which the source is currently capable of producing do not count towards the emissions increase for the project. Barr calculated the change in facility wide emissions using the actual to projected actual test for
Line 3.

The results of the actual to projected actual emissions test, and supporting documentation can be found in the attached Microsoft Excel workbook, "Combustor Redesign PSD Baseline Emissions.xls".

Barr's Approach:

The actual to projected actual test is done by taking the difference between a facility's projected actual
emissions and its "baseline actual emission rate".

In general, Barr used the emission calculation procedures HTC used for its 2004 emissions inventory report. Emissions were calculated using HTC emission factors based on 2004 stack testing of HTC
sources. EPA AP-42 emission factors were used for sources where test data were not available. The emission factors represent emissions from HTC for each Dry Short Ton (DST) of pellets produced or for each million Btu of energy used in the induration furnaces. The emission factors are summarized in the "Emission Factor" tab of that attached Excel workbook. Assumptions used in the emission calculations are
listed at the bottom of the "Emission Factor" tab of that attached Excel workbook

Barr calculated HTC's "baseline actual emissions" rate per 52.21(b)(48). This method allows the use of the highest emission rate for a 24 month period found in the 10 year period preceding the start of construction for the project as the actual emissions rate. HTC currently anticipates making the combustor changes to Line 3 in June 2005. This sets the 10 year period at June 1995 through June 2005. Actual emissions were calculated using HTC taconite production and fuel use data for the period June 1995 - April 2005.

Barr calculated HTC's projected actual emissions using HTC's projections for future operations. This includes HTC's anticipated 2005 production rate of 8 3 million wet long tons, which converts to 9,110,080 Dry Short Tons (DST) of pellets per year and indurator fuel use rate goals for 2005 of 334,204 Btu/DLT, which converts to 298,396 Btu/DST pellets produced. The production goals represent taconite production that HTC could achieve without the combustor redesign project. HTC is currently capable of producing

### To: Andrea J. Hayden From: Jack Kennedy Subject: Combustor Redesign PSD Baseline vs. Projected Actual Emissions Date: May 16, 2005 Project: 23/69-595
c: Steven G. Rogers Page 3 of 4 

# taconite pellets at this rate. Projected actual emission increases associated with normal demand growth were calculated using the production targets and the target fuel use rate. Projected actual emissions associated with the combustor redesign were calculated using HTC's production target and 90% of the fuel use rate goal (268,556 BtunDST pellet) to account for the energy savings from the project.

Barr assessed the change in emissions due to the combustor redesign by comparing the emission increase associated with normal product demand growth (projected actual emissions with the existing combustor minus baseline actual emissions) to the anticipated emission rate changes associated with the redesign project (projected actual emissions with the redesigned combustor minus baseline actual emissions). The results of this analysis for the Line 3 Combustor redesign are summarized in Table 1 Below

The projected actual emissions increases calculated for the Line 3 Combustor Redesign Project are as
follows:
Table 1:

Polluant Emission Increase Tiyr:

Projected Actual Emissions Minus Baseline Actual Emissions Existing Combustor Redesigned Combustor Difference PM 8.32 8.32 0.00 PM10 5.14 5.14 0.00 CO -1.38 -5.57 -4.19 Pb 0.0008 0.0008 0.0000 NOx -53.5 -249.9 -196.4 SO2 1.99 1.86 -0.13 VOC -0.56 -2.62 -2.05 Sulfuric Acid Mist 0.09 0.08 -0.01

Emission increases for the existing combustor case are due solely to changes in projected product demand; HTC is currently capable of producing taconite pellets at this rate. Emission decreases associated with the redesigned combustor are due to the 10% reduction in fuel use from the new design. Some pollutants show a slight decrease in emissions in the existing combustor design case due to a lower projected fuel use rate than historical fuel consum_ption rates.

The Table 1 values are estimates for Line 3 only. Calculations for the change in emissions using the actual to projected actual test associated with the Line 3 combustor redesign on a facility wide basis are

### To: Andrea J. Hayden From: Jack Kennedy Subject: Combustor Redesign PSD Baseline vs. Projected Actual Emissions Date: May 16, 2005 Project: 23/69-595
c: Steven G. Rogers Page 4 of 4 

# summarized in the "Line 3 Projected Emis" tab in the attached Microsoft Excel workbook (Combustor Redesign PSD Baseline Emissions.xls).

Notes:

• Based on the Energy Systems Associates report, NO„ and CO emission rates are not expected to increase on a lb/MMBtu basis as a result of the redesign. ESA's report shows that the redesign will reduce the size of high temperature combustion zones where NOx is formed_ The redesign
will also maintain furnace conditions conducive to full oxidation of CO and VOC's.

• For most pollutants, the highest 24-month baseline period is the period ending in November 2004.

• The period ending June 1997 was the highest for SO 2 and sulfuric acid mist. This period had relatively high production rates and the highest fuel oil use during the baseline period.

• The SO2 lb/MMBtu emission factor used in the 2004 emission inventory for the induration furnaces appears to overstate emissions by approximately 20%. The discrepancy appears to be based on a fuel use during the test of 262,243 Btu/DST pellets vs. the normal fuel use of 298,396 Btu/DST pellets.

A copy of the spreadsheet used for these calculations (Combustor Redesign PSD Baseline Emissions.xls)
is attached.

Please contact me if you have any questions on this report.

Sincerely,

ack Kennedy Telephone 952-832-2913
Email: JXK@Barr.com"cr. 1••• Lc)AnnualTaconiteProductionS Tons24 meperiodsstartJune1997Startof10 yrperiod:June1995StartofConstructionJun-05

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### AM = H2804 Acid Mist WC Emission Factors (4) Induration Furnace PM (6) 0.0884 Ibis-ton PM10 0.0884 Ibis-ton CO 0.093 113/MM Btu Pb 3.84E-05 Ibis-ton NOx 4.3 Ib/MM Btu SO2 0.36 IbIMM Btu VOC 0.045 IbJMM Btu AM (15) 0.0445 Lb AM/Lb 602 SO2 (10) 0.0942 Ibis-ton 

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325.0 ton r PM10 ,ton/ r 

### HibbingTaconite Company Emission Factors for PSD Baseline Actual Emissions Calculations

Check Calculations vs 2004 Emissions Inventory 2004 Pdn & Nat Gas Use In Baseline Nat Gas Use 2004 Emis Inv

9,102,501 2,835,305 2,835,265 PM 

### NA (Used PM10 factors for PM where MN Perf Test Used) P6110 1346.86 CO 133.82 133.82
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### 429.50 518.01 429.50 518.00
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Line 3 % of Production 

### 33.3%

Notes & Assumptions 1. Projected emissions are based on HTC's projected pellet production rate of 9.110 million Dry Short Tons (DST) per year of pellets (8,3 million Wet Long Tons (WLT)lyr), and projected indurator fuel use rates of 298,396 Btu/DST pellets produced. 2. A10% reduction in fuel use for the redesigned combustors. Per Energy System Associates report dated March 2005 3. A 10 yr PSD baseline starting In June 1995 and ending In June 2005. See HTC Pdn Data and Fuel Usage worksheets for HTC data. 4. In general, emission calculations forthe induration furnace are based On HTC's emission factors. The emission factors are based on the 2004 performance tests at Line 2. 5. Non-Induration source emission rates were calculated by using the 2004 emissions inventory emission rates times the ratio of past production rates to 2004 production. See Non Ind PM Emis Factor worksheet 6. In cases where 

### the PM emission factor was based on MN performance lest rules, PM was assumed to be equal to PM10. The PM10 emission factor is a higher emission factor because the MN 

### performance test method for PM does not Include inorganic condensable particulate matter,the PM10 method does (EPA Method 202). 7. For periods when fuel oil was used, PM and PM10 emissions from induration are the sum of PM and PM10 emissions calculated from the HTC emission factor and PM and PM10 from fuel combustion using AP-42 factors. It was assumed that PM emissions from natural gas combustion were incorporated in the HTC emission factor since the #2 Line was operating on natural gas during the performance test. 8. Emission rates for fugitive sources related to throughput were ratloed to taconite pellet production. This includes primarily sources associated with material transfers such as ore truck unloading. See Fug PM Emis Factor worksheet 9. Emission rates for fugitive sources not related to throughput were assumed to be constant on a ton per year basis. The emission factor for these sources was divided by 12 in the monthly calculations. This includes sources such as storage piles. Storage pile emission calculations are based on the area of the pile rather than throughput. So, the underlying assumption is that the area allotted for these piles has remained constant over the baseline period. See Fug PM Emis Factor worksheet 10. The SO 2

emission factor was converted from a lb SO, /MMBtu to a lb SO 2 /dry short ton pellets produced basis. EPA's AP-42 emission factors for natural gas combustion suggest that only 0.2% of 802 emissions come from natural gas combustion. See SO2 EF worksheet 11. All fuel oil combusted was assumed to be distillate oil (N° 2 FO) with a heating value of 140,000 Btu/gat and 0.4 wt% sulfur. HTC has used distillate, No4 and No6 fuel oils in the past. HTC was not able to supply data for fuel oil use by type. Distillate oil has lower emissions than No4 or Nob fuel oil; so, the emission calculations are conservatively /ow. Although the sulfur specifications for distillate oil are typically 0.5 wt% 5, a 0.4 wt % S content was used because most fuels have less sulfur than allowed. 12. A fuel oil use rate of 105,187 gai/yr was used for the projected actual emissions calculations for the existing design, and 10% less for the redesigned combustor case, This was the average fuel oil use rate of 0.0116 gal/DST pellets over the baseline period times the projected production rate. 13. A fuel use rate of 298,396 Btu/DST (of pellets was used for the projected actual emission rate. Average fuel use over the baseline period was 300,791BtWDST. 14. A heating value of 1,016 Btuiscf was assumed for natural gas from 1995 - 2004 and 1,007 Btuiscf for 2005. This is consistent with HTC's calculations. AP-42 emission factors were converted to a ibiMMBtu basis using 1020 Btuiscf as noted In the footnote to the AP-42 emission factor table. 15. An emission factor of 0,0445 lb of sulfuric acid mist/lb SO2 was used to estimate sulfuric acid mist emissions. Under normal combustion conditions, some sulfur is oxidized to form sulfuric acid mist; so it is reasonable to expect that some sulfuric acid mist emissions will come from the induration process. Since there were no test data or AP 42 emission factors for sulfuric acid mist emissions from induration furnaces, the ratio AP-42 emission factors for SO2 and sulfuric acid mist (as S03) from fuel oil combustion were used to estimate sulfuric acid emissions. The emission factor also includes and adjustment for the difference in molecular weight between S03 and sulfuric acid (H2SO4).

Page 15 of 23 5117/2005 Worksheet: Emission Factors

# HibbingTaconite Company

Emission Factors for PSD Baseline Actual Emissions Calculations S02 Emission Factor Based on S02 ltddst of Pellets, June, 2004 Line 2 Testing

SO2 lb/hr Total Average Duty During Test MMBtu/hr Average Production During Test DLT/hr SO2 from Natural Gas lb/hr SO2 from Pellets lb/hr SO2 from Pellets lb/DLT SO2 from Pellets lb/DST SO2 from Pellets lb/MMBtu Heat Input Btu/DST Pellets SO2 lb/MMBtu Adj for Avg Btu/DST

AP-42 Natural Gas SO2 Emission Factor
Hibbing Taconite Furnace Testing Hibbing, Minnesota 38.697 Sum from Tables 2,4,6 & 8 107.642 Average from Tables 2,4,6 & 8 366.250 Average from Tables 2,4,6 & 8 0.063 Duty * AP-42 38.634 0.1055 Test Cale of Emission Factors 0.0942 38.697 lb/hr 0.3595 38.697 lb/hr 262,413 0.2984 Avg Btu/DST 316,159

0.000588 lb/MM Btu
Barr Engineering Co. August 4, 2004

TABLE 2 GASEOUS POLLUTANT TEST RESULTS SUMMARY

Line 2 Furnace Stack SV025 Test Date 6/23/2004 6/24/2004 6/24/2004 Average Time Period 1732-1842 0806-0920 0945-1052 --- Air Flow Rate SCFM 165,060 164,109 167,605 165,600

DSCFM 149,159 149,437 151,769 150,100 EPA Method 6C Emission Results SO2 Concentration, ppm 9 11 10 10 SO2 Emission Rate, lb/hr 14 16 16 15 SO2 Emission Rate, lb/MMBtu 0.13 0.14 0.15 0.14 SO2 Emissions from Natural Gas 0.062 0.065 0,063 0.064 SO2 Emissions lb/dst pellet production 0.0376 0.0424 0.0427 0.0409 EPA Method 7E Emission Results NOx Concentration, ppm 139 134 136 136 NOx Emission Rate, lb/hr 148 143 148 146 NOx Emission Rate, lb/MMBtu 1.40 1.29 1.37 1.36 EPA Method 10 Emission Results CO Concentration, ppm 5.3 6.2 6.2 5.9 CO Emission Rate, lb/hr 3.5 4.0 4.1 3.9 CO Emission Rate, lb/MMBtu 0.033 0.036 0.038 0.036 EPA Method 25A Emission Results VOC Concentration, ppm(wet basis) as propane 1.1 1.2 0.7

0.8 1.0

1.1 0.9

1.1 VOC Emission Rate, lb/hr as propane VOC Emission Rate, lb/MMBtu 0.012 0.0071 0.011 0.010
Heat input to the Furnace, MMBtu/hr 106 111 108 108 Process Rate, Fired Pellet Production, dlt/hr 367 370 368 368

TABLE 4 GASEOUS POLLUTANT TEST RESULTS SUMMARY

Line 2 Furnace Stack(SV026 ) Test Date 6/23/2004 6/23/2004 6/23/2004 Average Time Period 1126-1233 1302-1408 1437-1547 --- Page 16 of 23 5/17/2005 Worksheet: SO2 EF

# HibbingTaconite Company

Emission Factors for PSD Baseline Actual Emissions Calculations Air Flow Rate SCFM 168,224 169,724 168,325 168,800

DSCFM 154,998 156,505 155,250 155,600 EPA Method 6C Emission Results SO2 Concentration, ppm 7.2 7.1 6.7 7.0 SO2 Emission Rate, lb/hr 11 1 1 10 11 SO2 Emission Rate, lb/MMBtu 0.11 0.10 0.10 0.10 SO2 Emissions from Natural Gas 0.062 0.062 0.062 0.062 SO2 Emissions Ib/dst pellet production 0.0301 0.0298 0.0283 0.0294 EPA Method 7E Emission Results NOx Concentration, ppm 123, 118 117 119 NOx Emission Rate, lb/hr 136 133 130 133 NOx Emission Rate, lb/MMBtu 1.29 1.25 1.24 1.26 EPA Method 10 Emission Results CO Concentration, ppm 4.1 4.2 4.4 4.2 CO Emission Rate, lb/hr 2.7 I 2.9 2.9 2.8 CO Emission Rate, lb/MMBtu 0.026 0.027 0.028 0.027 EPA Method 25A Emission Results VOC Concentration, ppm(wet basis) as propane 1,1 1.1 1.1 1.1 VOC Emission Rate, lb/hr as propane 1

. 3 111.111M. 0.012 1.3

0.012 1.3 VOC Emission Rate, lb/MMBtu 0.012 0.012
Heat input to the Furnace MMBtu/hr 106 106 105 105 Process Rate, Fired Pellet Production, dlt/hr 368 369 365 367

TABLE 6 GASEOUS POLLUTANT TEST RESULTS SUMMARY

Line 2 Furnace Stack SV027 Test Date 6/22/2004 6/23/2004 6/23/2004 Average Time Period 1625-1732 705-842 0907-1015 --- Air Flow Rate SCFM 181,203 180,063 183,589 181,600

DSCFM 168,900 173,509 173,668 172,000 EPA Method 6C Emission Results SO2 Concentration, ppm 4.2 2.4 5.0 3.9 SO2 Emission Rate, lb/hr 7.1 4.2 8.6 6.6 SO2 Emission Rate, lb/MMBtu 0.065 0.039 0.080 0.061 SO2 Emissions from Natural Gas 0.065 0.063 0.063 0.064 SO2 Emissions lb/dst pellet production 0.0193 0.0113 0.0235 0.0180 EPA Method 7E Emission Results NOx Concentration, ppm 84 83 85 84 NOx Emission Rate, lb/hr 102 ' 103 106 104 NOx Emission Rate, lb/MMBtu 0.93 ", 0.96 0.99 0.96 EPA Method 10 Emission Results CO Concentration, ppm 2.4 2.8 2.7 2.7 CO Emission Rate, lb/hr 1.8 2.2 2.0 2.0 CO Emission Rate, lb/MMBtu 0.016 0.020 0.019 0.018 EPA Method 25A Emission Results VOC Concentration, ppm(wet basis) as propane 0.9 1.1 0.7 0.9 VOC Emission Rate, lb/hr as propane 1.1 1.4 0.9 1.1 VOC Emission Rate, lb/MMBtu 0.010 0.013 0.008 0.010
Heat input to the Furnace MMBtu/hr 110 108 108 108 Process Rate, Fired Pellet Production, dltlhr 366 363 364 364

TABLE 8 Page 17 of 23 5/17/2005 Worksheet: SO2 EF

# HibbingTaconite Company

Emission Factors for PSD Baseline Actual Emissions Calculations

GASEOUS POLLUTANT TEST RESULTS SUMMARY

Line 2 Furnace Stack SV028 Test Date 6/22/2004 6/22/2004 6/22/2004 Average Time Period 0825-0932 1237-1341 1410-1530 -- Air Flow Rate SCFM 183,312 184,016 182,213 183,200

USCFM 173,833 173,927 172,157 173,300 EPA Method 6C Emission Results SO2 Concentration, ppm 4.2 3.2 3.1 3.5 SO2 Emission Rate, lb/hr 7.3 5.6 5.3 6.1 SO2 Emission Rate, lb/MMBtu 0.068 0.052 0.048 0.056 SO2 Emissions from Natural Gas 0.063 0.064 0.065 0.064 SO2 Emissions lb/dst pellet production 0.0198 0.0152 0.0143 0.0164 EPA Method 7E Emission Results NOx Concentration, ppm 65 63 65 64 NOx Emission Rate, lb/hr 81 79 80 80 NOx Emission Rate, lb/MMBtu 0.75 0.72 0.73 0.73 EPA Method 10 Emission Results CO Concentration, ppm 2.0 1.7 1.6 1.8 CO Emission Rate, lb/hr 1.5 1.3 1.2 1.3 CO Emission Rate, lb/MMBtu 0.014 0.012 0.011 0.012 EPA Method 25A Emission Results VOC Concentration, ppm(wet basis) as propane 1.0 1.4 0.7 1.0 VOC Emission Rate, lb/hr as propane 1.3 1.8 0.9 1.3 VOC Emission Rate, lb/MMBtu 0.012 0.016 0.008 0.012
Heat input to the Furnace MMB u/hr 108 109 110 109 Process Rate, Fired Pellet Production, dlt/hr 365 365 365 365

Page 18 of 23 5/17/2005 Worksheet: SO2 EF

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# PP?. Hibbing Taconite Company Cliffs Mining Company, Manager



# January 26, 2006
Minnesota Pollution Control Agency Supervisor Compliance Determination Unit Air Quality Division 520 Lafayette Road North St. Paul, MN 55155-4194
Re: Hibbing Taconite Company Air Permit No. 13700061-001 Notification of Energy and Emission Reduction Project
To Whom It May Concern:
With this letter, Hibbing Taconite Company ("HTC") is pleased to notify the Minnesota Pollution Control Agency of HTC's upcoming Energy and Emission Reduction Project. The project will involve a change to the two combustion chamber upper air inlets on the Line 1 indurating furnace to allow for more efficient combustion of natural gas. Specifically, the project will include increasing the cross-sectional area of the upper inlet air transition ducts, in order to produce a more uniform airflow. Basically this is the same change as completed on Furnace Line 3 in 2005 as indicated in the September 19, 2005 letter submitted to the MPCA.
For Furnace Line 3, based on computational fluid dynamic modeling conducted by Energy Systems Associates ("ESA") in 2005, ESA projected up to a 10% decrease in indurating fuel natural gas usage, as a result of the improvement project. In addition to ESA's modeling and based on calculations prepared by Barr Engineering (both were included with the September 19, 2005 letter submitted to the MPCA), the project would not result in an increase in the lb/hour emission rate and annual emissions. Instead, the project was calculated to substantially reduce NOx emissions by as much as —196 tons per year.
Monitoring the Furnace Line 3 performance has confirmed that the expected 10% decrease in natural gas usage is being achieved. The same results are expected on Furnace Line 1.
As with Furnace Line 3, this Furnace Line 1 project does not change any production capacities and merely seeks to realize indurating fuel natural gas savings (and associated emission reductions) through more efficient operation of the furnace. As the project does not result in any emissions increase as calculated under Minn. R. 7007.1200, and does not otherwise constitute a modification of process or control equipment, no permit amendment or formal notification to MPCA is required prior to commencement or completion of this project. The purpose of this letter, therefore, is merely to keep the

Highway 5 North • P.O. Box 589 • Hibbing, MN 55746-0589 • 218/262-6800 • Fax 218/262-6877

# MPCA informed regarding HTC's ongoing efforts to reduce energy consumption and

lower emissions at its facility.
To the extent that you have any questions regarding this project, please contact me at (218) 262-6856.
Sincerely,

--dreg J. Hayden _.) 

# ( A Senior Environmental Coordinator Hibbing Taconite Company

C: E. LaTendresse S. Rogers S. Romani D. Skolasinski D. Crouch D. Byrne

# Hibbing Taconite Company Cliffs Mining Company, Manager



# May 15, 2006
Minnesota Pollution Control Agency Supervisor Compliance Determination Unit Air Quality Division 520 Lafayette Road North St. Paul, MN 55155-4194
Re: Hibbing Taconite Company Air Permit No. 13700061-002 Notification of Energy and Emission Reduction Project
To Whom It May Concern:
With this letter, Hibbing Taconite Company ("HTC") is pleased to notify the Minnesota Pollution Control Agency of HTC's upcoming Energy and Emission Reduction Project. The project will involve a change to the two combustion chamber upper air inlets on the Line 2 indurating furnace to allow for more efficient combustion of natural gas. Specifically, the project will include increasing the cross-sectional area of the upper inlet air transition ducts, in order to produce a more unifoun airflow. Basically this is the same change as completed on Furnace Line 3 in 2005 and Furnace Line 1 in 2006, as indicated in the September 19, 2005 and January 26, 2006 letters (respectively) submitted to the MPCA.
For Furnace Line 3, based on computational fluid dynamic modeling conducted by Energy Systems Associates ("ESA") in 2005, ESA projected up to a 10% decrease in indurating fuel natural gas usage, as a result of the improvement project. In addition to ESA's modeling and based on calculations prepared by Barr Engineering (both were included with the September 19, 2005 letter submitted to the MPCA), the project would not result in an increase in the lb/hour emission rate and annual emissions. Instead, the project was calculated to substantially reduce NOx emissions by as much as —196 tons per year. Monitoring the Furnace Lines 1 and 3 performances has confirmed that the expected 10% decrease in natural gas usage is being achieved. Similar results are expected on Furnace Line 2.
As with Furnace Lines 1 and 3, this Furnace Line 2 project does not change any production capacities and merely seeks to realize indurating fuel natural gas savings (and associated emission reductions) through more efficient operation of the furnace. As the project does not result in any emissions increase as calculated under Minn. R. 7007.1200, and does not otherwise constitute a modification of process or control equipment, no peiniit amendment or formal notification to MPCA is required prior to commencement or

Highway 5 North P.O. Box 589 • Hibbing, MN 55746-0589 • 218/262-6800 • Fax 218/262-6877

# completion of this project. The purpose of this letter, therefore, is merely to keep the

MPCA informed regarding HTC's ongoing efforts to reduce energy consumption and lower emissions at its facility.
To the extent that you have any questions regarding this project, please contact me at (218) 262-6856.
Sincerely, 

# 4 ,,ity

Ulre ( a J. Hayden _ Section Manager - Environmental 

# IT
- ibbing Taconite Company

C: E. LaTendresse S. Rogers S. Romani D. Skolasinski D. Crouch D. Byrne